Do You Need a License to Be a Bookkeeping Service?

by Zari Ballard, Demand Media

Certified bookkeepers have a better marketing angle.

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While a bookkeeping service, to operate legally, must obtain a business license in accordance with Small Business Association (SBA) regulations, it is not technically required by law to employ "licensed" bookkeepers. However, nationally accredited licensing and certification is available for bookkeepers that would increase the overall marketability of the business itself and provide an advantage over the unlicensed competition.

Certified Public Bookkeeper (CPB)

A Certified Public Bookkeeper (CPB) license distinguishes a bookkeeper with a nationally accredited title and assures clients that the work provided by the bookkeeping service is based on education, experience and ethics. The CPB Application for Licensure as well as the exam study material is available at the National Association of Certified Public Bookkeepers (NACPB) website. Before submitting the CPB license application, a bookkeeper must pass the nationally recognized Uniform Certified Public Bookkeeper Examination, complete one year or two thousand hours of Bookkeeping or Accounting Experience, agree to abide by the NACPB Code of Professional Conduct and pay a fee of $100.00. A newly licensed CPB is also required to take 24 hours of Continuing Professional Education (CPE) credit each year to keep the license current.

Certified Payroll Specialist (CPS)

Bookkeepers licensed as Certified Payroll Specialists (CPS) are legally entitled to follow their signatures with the CPS accreditation and display the CPS logo on websites and marketing materials. With this additional accreditation, a bookkeeping service can offer clients advanced payroll capabilities in addition to bookkeeping and accounting services. To apply for a CPS license, you must pass the Uniform Certified Payroll Specialist Examination, complete one year or two thousand hours of hands-on payroll experience and agree to comply with the NACPB Code of Professional Conduct. In addition, a CPS must complete 16 hours of CPE course credit each year to stay current. The CPS Application for Licensure as well as exam study material is available for download at the NACPB website for $100.00.

Certified QuickBooks Advisor (CQA)

To become licensed as a Certified QuickBooks Advisor (CQA), you must pass the Uniform Certified QuickBooks Advisor Examination, complete one year or two thousand hours of QuickBooks Advisor experience and agree to comply with the NACPB Code of Professional Conduct (See Reference 4). To stay current, a CQA must complete 16 hours of CPE course credit each year. A bookkeeping service with at least one CQA accreditation assures clients that employees have advanced knowledge and skills in the most widely used of all small business accounting software. CQA Application for Licensure is available for download at the NACPB website for $100.00 at time of publication.

Certified Bookkeeper (CB)

To obtain the title of Certified Bookkeeper (CB), the American Institute of Professional Bookkeepers (AIPB) requires you to possess two years of full-time bookkeeping experience or the part-time or freelance equivalent, pass a four-part national exam and agree to a code of ethics. The CB program, which tests a bookkeeper's competency in bookkeeping, payroll and financial management, is intended to be a stepping stone toward taking the exam required to become a CPB. Bookkeepers interested in licensing and certification can find downloadable applications, program information and exam study guides and information about continuing education and bookkeeping best practices at both the AIPB and NACPB websites.

About the Author

A Freelance Writer/Editor with over fifteen years of experience, Zari Ballard holds a BA in Communications/English from Rhode Island College. Often published under the pen name "The Writer's Ghost", Zari's work appears at AssociatedContent.com, EHow.com, WiseGeek.com, Free-Downloads.net, and GoodTasteInternational.com. Through BizReef.com, Zari offers a variety of writing, SEO web content, and copy editing services.

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